When you invest in a managed fund your money is ‘pooled' with the money of other investors who have similar investment goals to you. Each investment you make buys a certain number of units, which represent your share in the pool of money. A professional fund manager invests this pool of money in assets (e.g. shares, bonds etc) in line with the fund's investment objectives.

When you invest you are allocated a number of 'units' in the Fund you choose, based on the entry unit price at the time of your investment. As a unitholder (holder of units) in a Fund you share in the returns from the Fund's investments and other assets in proportion to the number of units you hold. Fees do apply and these are clearly described in the prospectus, a document that you must read and understand before you invest. The Funds are governed by a trust deed and by government regulations. The trust deed sets out the conditions under which the Funds are to operate and the rights, responsibilities and duties of the manager and the trustee.